Disability insurance replaces a portion of your income — typically 60–70% — if you are unable to work due to an illness, injury, or medical condition. It is sometimes called income protection insurance, and for good reason: it keeps your household running when your paycheck stops.

Unlike workers' compensation, which only covers on-the-job injuries, disability insurance covers you regardless of where or how you become disabled. Most disabilities are caused by illness, not accidents.

As an independent agency with credentialed staff, Priority Insurance helps you understand the difference between employer-provided group coverage and individual policies — and whether you have a gap that needs to be filled.

The gap most people miss: Many people assume their employer's group disability policy is enough. But group coverage often replaces only 50–60% of your base salary, typically excludes bonuses and commissions, and ends the day you leave your job. An individual disability policy is portable, more comprehensive, and owned by you — not your employer.

The Social Security fallback myth: Social Security Disability Insurance (SSDI) has a notoriously difficult approval process — over 60% of initial applications are denied — and even approved benefits average less than $1,500 per month. That's rarely enough to maintain a Greenville-area household.

Standard group disability plans cap benefits at a fixed dollar amount — often $10,000–$15,000 per month — leaving high-income earners with a significant uncovered gap. High-limit individual disability policies supplement employer coverage to protect your full income.

✓ Designed for physicians, executives, attorneys, and high earners

✓ Covers income above group plan maximums

✓ Protects bonuses, commissions, and variable compensation

✓ Coordinates with existing employer-provided coverage

Isn't my employer's group disability coverage enough?
Possibly not. Group disability plans typically replace only 50–60% of your base salary, usually cap benefits at a monthly maximum (often $10,000–$15,000), and exclude bonuses, commissions, and other variable pay. They're also tied to your employment — if you leave or are laid off, the coverage disappears. An individual policy closes these gaps and travels with you regardless of where you work.
What's the difference between short-term and long-term disability?
Short-term disability covers the first 3 to 6 months of a disabling condition, with benefits starting after a short elimination period. Long-term disability picks up where short-term leaves off and can continue paying benefits for 2 years, 5 years, 10 years, or until retirement age — depending on your policy. Most financial advisors recommend having both, since the two products work together to eliminate gaps in income protection.
Why does "own-occupation" vs "any-occupation" matter so much?
It's one of the most important distinctions in the entire disability market. Under an own-occupation definition, you're considered disabled if you cannot perform the material duties of your specific occupation — even if you could work in a different field. A surgeon who loses fine motor control in their hands, for example, would qualify under own-occupation even if they could technically work as a consultant. Under an any-occupation definition, that same surgeon might be denied benefits entirely. For professionals whose income is tied to a specific skill set, own-occupation coverage is essential.
Are disability insurance benefits taxable?
It depends on how the premiums are paid. If you pay your individual disability premiums with after-tax dollars (which is the most common setup for personally-owned policies), your benefits are received income-tax-free. If your employer pays the premiums as a business expense, the benefits are generally taxable to you as ordinary income. This is one reason individually-owned policies are often more valuable than they appear at first glance — a 60% benefit that arrives tax-free may effectively replace more of your take-home pay than a 70% employer benefit that is fully taxable.
How much disability coverage do I actually need?
The general guideline is to replace 60–70% of your gross income — enough to cover essential expenses without over-insuring (insurers limit coverage to prevent financial incentives to stay disabled). To determine your actual need, we look at your monthly obligations (mortgage, utilities, food, debt payments), any existing coverage, your emergency fund depth, and your elimination period tolerance. Our team runs this analysis at no cost as part of the quoting process.
Can I get disability insurance if I have pre-existing condition?
Sometimes, yes — though the condition may be excluded from coverage or result in a higher premium. Because we work with multiple carriers, we can often find a company whose underwriting is more favorable to a particular condition. In some cases, a simplified-issue or guaranteed-issue group disability product (through an employer or association) may be a better path. The important thing is not to wait — the older you are and the more health history you accumulate, the harder individual coverage becomes to obtain at standard rates.
What do ChFC and CLU designations mean for me as a client?
The Chartered Life Underwriter (CLU) is the premier credential in life insurance and income protection planning — it requires completing eight college-level courses covering advanced insurance concepts, disability income, estate planning, and business insurance strategies, along with a rigorous ethics commitment. The Chartered Financial Consultant (ChFC) builds on that foundation with additional coursework in comprehensive financial planning, retirement income, and wealth management. Both are awarded by The American College of Financial Services. For disability insurance specifically, this expertise matters because policy definitions — own-occupation vs. any-occupation, elimination periods, benefit riders — vary dramatically between carriers and can mean the difference between a claim being paid or denied. A credentialed advisor understands the fine print before you need to use it.

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Disability Insurance

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What Is Disability Insurance?